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The fundamentals of Litcoin and the Litecoin price

In this article, we are going to focus on Litecoin, including how it came to be,
what it is, what is the technology behind it and how the Litecoin price is
determined on the market. As with other Altcoins that started appearing after the
Bitcoin, the Litecoin gained traction, and it made a foothold on the market for
its specific characteristics. If you want to know more about cryptocurrency,
you should read Blockbid’s Bitcoin guide.

Sign up for Blockbid trading platform and be the first to be notified when new currencies go live.

What is Litecoin?Litecoin or its abbreviation and ticker symbol LTC is a P2P cryptocurrency and an
open-source software project. It was created under the MIT/X11 license, which is
a permissive software license developed by the Massachusetts Institute of
Technology (MIT). The crypto-coins are transferred through an open-source
cryptographic protocol, so if you understand the way Bitcoin transfers work, you
already know how Litecoins work.

The Litecoin software project was developed by Charlie Lee (former Google
employee), and it was released through an open-source client on GitHub on October 7,
2011, and it went live a week later on October 13. The main difference between
Bitcoin and Litecoin is in the processing time, so if you need at least 10 minutes
for a Bitcoin transaction, a Litecoin transaction would be done in less than
3 minutes.

The Litecoin was indeed created as an alternative (the true Altcoin), with the
goal to solve a lot of the problems Bitcoin had. The Litecoin was also the first
cryptocurrency, which used a different script algorithm then the Bitcoin and
allowed miners to mine the crypto-coins without investing in expensive equipment,
but rather to use their desktop computers.

The Litecoin stretched to $1 billion in market capitalisation in November 2013.
Another interesting fact about the Litecoin is that in May 2017, the first
Lightning Network transaction was completed through Litecoin, transferring
0.00000001 LTC from Zürich to San Francisco in under one second. Moreover, in
February 2018, Litecoins became a payment method for the EU online retailer
Alza.cz.

The Litecoin priceAs with any cryptocurrency on the market, it’s hard to speculate about the price
and how it will be affected in the future. Other than the already known dynamics
of the supply and demand principals, cryptocurrencies tend to be more volatile
and subjected to other external factors, not all of them familiar to the public.

As of the writing of this article, Litecoin has the 7th largest market cap in
the world, with 11,967,949,134 AUD. The Litecoin price is at 212 AUD, and it has
a current circulating supply of 56.4 million coins, and a total volume exchanged
of 261,609,744 AUD.

Analysis show, however, that the price of the Litecoin is tied to the price of
the Bitcoin, so whenever the Bitcoin has a surge in price, the Litecoin also
gets an increase. The value behind the Litecoin is, as with any other
cryptocurrency on the market, in the technology, and the fact that this
crypto-coin is far more adaptable in implementing changes than the Bitcoin is.

Exchange Litecoin to AUD

How can you acquire Litecoins?

I. MiningThe good news is that mining Litecoins requires less sophisticated equipment than
mining Bitcoins does, but the bad news is that it’s still expensive. However, if
you’re interested in mining Litecoins nonetheless, this is the way to do it:

Download a version of a pooler’s CPU miner (solo mining is not viable anymore).

Install the program and set up the mining pool (you’ll also need a
mining_proxy, which supports the Stratum protocol).

Register an account (you need this to start mining and to create a pool with
other miners/workers)with some of the websites that offer the service.

Start mining.

II. ExchangesIf you’re not technologically savvy or you just don’t want to bother with mining,
then you should use an exchange where you can buy your Litecoins. If you are
based in Australia, the most profitable transaction is to exchange Litecoin to
AUD because it’s the local currency and you won’t have to pay additional
conversion fees.

Cryptocurrency exchanges function on a similar principle as traditional ones
— you open an account where you verify your identity by providing personal
details, and then you gain access to the trading floor. Once you’re there,
you can place orders and buy or sell any cryptocurrency offered on the exchange.

After you place and pay for your order, you gain the crypto-coin in the online
wallet provided to you by the exchange. You can keep your coins there for further
trading, or you can transfer them to your personal crypto wallet for safekeeping.

Buy Litecoin in Australia

If you made the decision to start trading with cryptocurrencies and you want to
buy Litecoin in Australia, always make sure you’re using a verified local exchange. Blockbid is a Melbourne-based virtual cryptocurrency platform, which allows traders to
trade more crypto-coins on a single platform than any other exchange in the world.

This is a huge advantage for anyone who doesn’t want to lose time (since crypto
transactions are time-sensitive) in changing accounts between different platforms
or lose money in conversations.

The number of crypto-coins and fiat currencies (AUD, USD and EUR) supported on
the platform is also significant, and you can choose between all the popular
Altcoins for a more diverse trading experience. The transaction fees are 0.1
percent, and the platform can perform up to 1 million transactions in a second.

Another important feature is the security, and 95 percent of the crypto-assets
are kept in an offline multi-signature hardware vault, and Blockbid is one of
the first exchanges with cybersecurity insurance. The interface is user-friendly,
so you can start trading there even if you’re a beginner. The platform was
designed intuitively exactly for that purpose, so that it can accommodate all
level traders.

Blockbid is fully compliant with Australian cryptocurrency laws and AML/CTF
guidelines, and it’s registered with AUSTRAC. You can follow the Litecoin price,
trade Litecoins or some other crypto-coin — it’s up to you.